Donegal Group (NASDAQ:DGICA – Get Free Report) is one of 311 public companies in the “Insurance” industry, but how does it weigh in compared to its competitors? We will compare Donegal Group to related companies based on the strength of its valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.
Dividends
Donegal Group pays an annual dividend of $0.77 per share and has a dividend yield of 4.1%. Donegal Group pays out 41.2% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 2.9% and pay out 30.4% of their earnings in the form of a dividend. Donegal Group has increased its dividend for 5 consecutive years.
Institutional & Insider Ownership
28.0% of Donegal Group shares are held by institutional investors. Comparatively, 55.9% of shares of all “Insurance” companies are held by institutional investors. 2.8% of Donegal Group shares are held by insiders. Comparatively, 13.6% of shares of all “Insurance” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Donegal Group and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Donegal Group | 7.24% | 10.49% | 2.80% |
| Donegal Group Competitors | 9.05% | -9.83% | 4.11% |
Earnings and Valuation
This table compares Donegal Group and its competitors gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Donegal Group | $978.01 million | $79.34 million | 10.14 |
| Donegal Group Competitors | $15.48 billion | $1.70 billion | 34.36 |
Donegal Group’s competitors have higher revenue and earnings than Donegal Group. Donegal Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Analyst Recommendations
This is a summary of current recommendations and price targets for Donegal Group and its competitors, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Donegal Group | 0 | 2 | 1 | 0 | 2.33 |
| Donegal Group Competitors | 3328 | 15655 | 16510 | 739 | 2.40 |
Donegal Group presently has a consensus price target of $20.00, suggesting a potential upside of 5.49%. As a group, “Insurance” companies have a potential upside of 4.89%. Given Donegal Group’s higher possible upside, equities analysts plainly believe Donegal Group is more favorable than its competitors.
Volatility & Risk
Donegal Group has a beta of -0.03, meaning that its share price is 103% less volatile than the S&P 500. Comparatively, Donegal Group’s competitors have a beta of -1.59, meaning that their average share price is 259% less volatile than the S&P 500.
Summary
Donegal Group competitors beat Donegal Group on 11 of the 15 factors compared.
About Donegal Group
Donegal Group Inc., an insurance holding company, provides property and casualty insurance to businesses and individuals. It operates through three segments: Investment Function, Personal Lines of Insurance, and Commercial Lines of Insurance. The company offers private passenger automobile policies that provide protection against liability for bodily injury and property damage arising from automobile accidents, as well as protection against loss from damage to automobiles; and homeowners policies, which provide coverage for damage to residences and their contents from a range of perils, including fire, lightning, windstorm, and theft, as well as liability of the insured arising from injury to other persons or their property. It also offers commercial automobile policies that provide protection against liability for bodily injury and property damage arising from automobile accidents and protection against loss from damage to automobiles owned by the insured; commercial multi-peril policies that provide protection to businesses against combining liability and physical damage coverages; and workers’ compensation policies, which provide benefits to employees for injuries sustained during employment. The company markets its insurance products primarily to Mid-Atlantic, Midwestern, New England, Southern, and Southwestern regions through independent insurance agencies. Donegal Group Inc. was incorporated in 1986 and is based in Marietta, Pennsylvania. Donegal Group Inc. operates as a subsidiary of Donegal Mutual Insurance Company.
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